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Elements of Accounting Exercises

Test Yourself

Test your accounting skills with these exercises on Elements of Accounting under the Fundamental Accounting Concepts tutorials.

Instructions

For the exercises below, write your answers on a piece of paper. When you're done, check the answers page at the end to see if you got them correctly.

A. For each item, indicate whether it is an Asset, a Liability, or Capital in Column A. Then, if the item is an asset or a liability, indicate if it is Current or Non-current in Column B. If the item is capital, place N/A in Column B.

  A B
1. Tools and equipment Asset Non-current
2. Salaries payable    
3. Additional investment of owner    
4. Cash on hand    
5. Cash deposited in Prime Bank    
6. Delivery truck    
7. Obligation to pay supplier    
8. Loan from bank, 5 years    
9. Investment in long-term bonds    
10. Prepaid insurance    
11. Patent (an intangible)    
12. Withdrawals made by owner    
13. Merchandise for sale    
14. Building used as office space    
15. Accounts receivable    

B. For each item, indicate whether it is an Income or an Expense. If it is neither income nor expense, write its proper classification.

1. Rent revenue Income
2. Rent payable  
3. Salaries of employees  
4. Sales  
5. Light, water, and electricity  
6. Loss from flood  
7. Accumulated depreciation  
8. Prepaid advertising  
9. Delivery costs  
10. Gain on sale of land  

C. For each of the following accounts, indicate whether it is an Asset, Liability, Income, or Expense. If it is an asset or a liability, specify whether it is current or non-current.

1. Merchandise Inventory Asset Current
2. Accounts Payable    
3. Utilities Expense    
4. Service Revenue    
5. Computer Equipment    
6. Office Supplies    
7. Bonds Payable    
8. Land    
9. Cash    
10. Furniture and Fixtures    
Check Answers
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